Growing your business demands time. Lots of it. This doesn’t leave much room for concentrating on your company’s books or building your accounting systems. While things like managing reconciliations, comparing cash flows to receivables, and generating profit and loss statements aren’t overly complicated, they require effort and analysis. While some small companies can get away with a part-time bookkeeper, most companies (especially those who plan to scale) will need a financing team to create forecasts, analyze customer acquisition costs, and determine product-level profitability.
A full-service outsourced accounting firm has the advantage of scaling up or down depending on your business needs. Along with monthly bookkeeping tasks, an outsourced accounting firm can create quarterly board presentations, detailed annual budgets, forecasts, or assist with due diligence or audit requests.
At G-Squared Partners, we ensure your books are accurate and easy to understand, so you’re in a position to make strategic business decisions and achieve your goals. When the time comes to secure financing or investors, we’re confident you have the systems, controls, and reports in place that you need.
When it comes to outsourced accounting and bookkeeping services, there are three main areas to consider.
An outsourced accounting firm focuses on processing and recording transactions, including sending invoices, managing payroll, managing receivables, and pursuing collections.
Controller functions involve closing the companies books, preparing financial statements, and calculating critical metrics from those statements (i.e., accounts receivable, profit margins, and aging schedules).
Outsourced CFO's are in charge of creating budgets and forecasts, analyzing the business profitability drivers, supporting lender relationships, providing financial data and analysis for board presentations, assisting with capital raises, and providing support for M&A activities.
Most outsourced financial firms tend to focus on just one of the three areas listed above. However, there is tremendous value to hiring an outsourced accounting firm that specializes in all three areas. Firms specializing in all three functions can see the big picture regarding a company's finances- allowing for information-sharing between positions.
For example, a firm that only handles accounting functions may not see that last month's inventory or receivable changes may affect cash flow the next month. Or how margins or product sales may affect strategic decisions. The three functions are all interrelated and should be treated as such to ensure the long-term viability and scale of your business.
The right outsourced accounting and bookkeeping solutions can transform the financial management of your business.
Outsourcing accounting functions allow business owners to focus on growing their business and most importantly- focus on their customers. Many companies leverage the expert knowledge of outsourced CFO firms who go on to provide guidance on selling your business, M&A, and more.
It’s been reported that up to 60% of business owners aren’t comfortable performing financial functions as it pertains to their business. Outsourcing accounting services provide companies with peace of mind and comfort in knowing that their books are handled by finance professionals
When a big project arises or an unexpected inquiry occurs, an outsourced accounting and bookkeeping firm is able to marshall those resources right away. Outsourced firms can organize the financial records needed for due diligence and advanced reporting.
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